Montgomery & co., a well-established law firm, provided 500 hours of its time to fink corporation in exchange for 1,000 shares of fink's $5 par common stock. montgomery's usual billing rate is $700 per hour, and fink's stock has a book value of $250 per share. by what amount will fink's paid-in capital—excess of par increase for this transaction?

a) $345,000

b) $295,000

c) $350,000

d) $300,000

A) $345,000

Explanation:

Total Value of services provided = 500*700

                                                       = $350,000

Common stock = 1000*5

                          = $5,000

Excess amount attributable to paid-in capital—excess of par

= $350,000 - $5,000

= $345,000

Therefore, The amount will Fink's paid-in capital—excess of par increase for this transaction is $345,000.

reducing the scale of the market for a new product.